Lesson 4: Residential Real Estate Valuation

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August 30, 2016 at 11:00 am  •  Posted in f16-econ491 by  •  0 Comments

Wed, Aug 31

Review:

  • Mortgage 101

Presentation:

  • Comparable Sales (aka “comps”)
    • Find similar properties recently sold (typically 3)
    • Calculate price per square foot
    • Apply price per square foot to your property
    • Adjust for key valuation drivers
      • Identify key value differences (e.g., 2-car garage, AC), if any
      • Estimate valuation difference and +/- value
  • Determining Property Values (YouTube video)
  • Estimate value of new listing
    • 3017 8th Ave. [list price = $269,000 | sqft = 1807]
    • Comps [ address | $ per sqft | Selling date ]
      • 2918 Country Club Dr. | $111.91  | 7/8/16
      • 2935 Country Club Dr. | $98.70 | 5/26/16
      • 3213 Northridge Dr. | $97.19 | 1/4/16
      • Average: $120 per sq ft @ 1,807 = $216,840

Assignment:

  • Identify 3 comparable sales for your property
  • Estimate property valuation based on your 3 comps

 

 

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